Annie's Homemade prepares a direct materials budget for its ice cream base, which is the foundational component of all...

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Annie's Homemade prepares a direct materials budget for its ice cream base, which is the foundational component of all ice cream flavors. It includes ingredients such as whole milk, heavy cream, and sugar that provide a "blank canvas" for creating create specific flavors. The company buys ice cream base from a supplier for $62 per case, each of which contains two 2.5-gallon bladders. Each 2.5- gallon bladder produces an average of 80 servings of ice cream. The company always maintains ending inventories equal to 20% of next quarter's production needs. The estimated quarterly production (in servings) for next year are as follows: Quarter 1 13,200 Quarter 2 20,000 Budgeted production in servings Required: Prepare a direct materials budget by quarter and in total for next year. Required production in servings Servings per case Number of cases needed to meet production Add beginning inventory in cases Total cases needed Less desired ending inventory in cases Cases to be purchased 1 13,200 62 2 Quarter 3 30,000 Quarter 20,000 62 3 30,000 62 Quarter 4 15, 200 4 15,200 62 34 Year 78,400 62 34

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Here s the direct materials budget for Annie s Homemade ice cream base by quarter and in total for the next year Quarter 1 Required production in serv View the full answer